Workers prepare a column for a concrete pour at the Minnesota Vikings stadium under construction in downtown Minneapolis. Minnesota lost 3,500 construction jobs in November as a winter chill took hold earlier than usual. (Staff photo: Bill Klotz)

Minnesota sheds 3,500 construction jobs in November

Minnesota gained 6,600 jobs in November, but the construction industry shed 3,500 jobs during a bitterly cold month — the most of any employment sector and the sector’s largest October-to-November decline since 1991.

Still, the state’s overall unemployment rate fell to 3.7 percent from 3.9 percent in October, the lowest point since May 2001 and well below the 5.8 percent national rate, the Minnesota Department of Employment and Economic Development reported Thursday.

The rate fell despite a tough month for construction jobs. Steve Hine, research director of DEED’s Labor Market Information Office, said weather had a “significant impact” on construction jobs across the state.

Typically, construction jobs start to dip in September as the weather cools, but the declines this year were less spread out, Hines said. December may be better than usual “because those seasonal losses were compressed in November,” he said.

Put another way, the state added 200 construction jobs in September and tacked on another 900 in October – unusual gains for those months. Hine said the state had “further to fall” this year when the bad weather struck.

Employment in architectural, engineering and “related services” was down 1.87 percent from October to November. From November 2013 to November 2014 it was up 3.8 percent. The state reports 20,262 jobs in that category.

Phil Raines, vice president of public affairs for the Associated Builders and Contractors of Minnesota and North Dakota, said weather is “probably a good place to look” for an explanation of the construction job losses.

“People did hold their numbers pretty solid through the month of October, and when the temperature changes and the ground freezes, there is only so much you can do,” he said.

Dave Semerad, CEO of the Associated General Contractors of Minnesota, said he expected the numbers to be off a little because of the weather. The January numbers should show an increase, he said.

Nationally, construction employment hit a five-year high in November with 20,000 new jobs, the Associated General Contractors of America said this month. But AGC said there are still signs of weakness in demand for public sector and non-residential construction.

In all, 112,214 people are working in construction statewide, according to DEED. That’s down from the 146,052 peak in August 2005, but up significantly from the low point of 69,515 in February 2010.

Raines said builders are staying busy and are fairly optimistic about next year.

“They are not banging the drum that this is going to be the best market they have ever seen or anything like that, but the general rule is if a few things come through we will be solid,” he said.

Overall, Minnesota has gained 51,065 jobs in the past year, including more than 35,000 in the past four months, DEED said. The 1.8 percent growth rate is slightly less than the nation’s 2 percent rate.

DEED officials were upbeat about the overall November report.

“We are on a roll,” Hine said Thursday. “We have seen our recent job surge continue into November.”

Leisure and hospitality led all sectors in November with a gain of 6,100 jobs, followed by financial activities (up 3,100), professional and business services (up 1,700), government (up 1,700), and education and health services (up 1,300).